A dual GST system is planned to be implemented in India as proposed by the Empowered Committee under which the GST will be divided into two parts:
- State Goods and Services Tax (SGST)
- Central Goods and Services Tax (CGST)
Both SGST and CGST will be levied on the taxable value of a transaction. All goods and services, leaving aside a few, will be brought into the GST and there will be no difference between goods and services. The GST system will combine Central excise duty, additional excise duty, services tax, State VAT entertainment tax etc. under one banner.